Takeda to cut 10 percent of workforce by March 2016

By IBT Staff Reporter On 01/18/12 AT 7:24 AM

Takeda Pharmaceutical Co <4502.T> said on Wednesday that it would cut about 10 percent of its workforce through job reductions outside Japan as it seeks to streamline its global operations after its acquisition of Swiss drugmaker Nycomed last year.

Japan's largest drugmaker plans to cut 2,100 jobs mainly in Europe and 700 in the United States by March 2016. As a result, Takeda expects to save about 200 billion yen ($2.6 billion) during the same timeframe, it said in a statement.

But Takeda, which employs about 30,000 people globally, said the move initially would lower its profit by 35 billion yen in the fiscal year ending in March. It will announce revised forecasts for the current fiscal year on February 1.

Takeda, which competes against Astellas Pharma <4503.T>, Otsuka Holdings Co <4578.T> and Daiichi Sankyo Co <4568.T> on its home turf, is struggling to boost profits due to a strong yen and costs related to the Nycomed buyout. Takeda in November cut its full-year operating profit forecast by 31 percent.

Takeda in May agreed to buy Nycomed for 9.6 billion euros (or $13.7 billion at the time), to boost its presence in emerging markets and add a new lineup of drugs. ($1 = 76.8100 Japanese yen)